What is the Present Value (PV) of the following series of cash flows using an 8% discount rate? $\begin{array}{lc}
\text { Year } & \$ \
\hline 1 & 500 \
2 & 300 \
3 & 0 \
4 & 400 \
5 & 400
\end{array}$
A) Less than $1200
B) $1201 - $1250
C) $1251 - $1300
D) $1301 - $1350
E) More than $1350

Question

Quizplus · Accepted Answer

The present value of each cash flow is calculated using the formula $PV = \frac{C}{(1+r)^n}$, where $C$ is the cash flow, $r$ is the discount rate, and $n$ is the year. Summing these values gives a total PV between $1251 and $1300.

What Is the Present Value (PV) of the Following Series Year $150023003044005400\begin{array}{lc}\text { Year } & \$ \\\hline 1 & 500 \\2 & 300 \\3 & 0 \\4 & 400 \\5 & 400\end{array} Year 12345​$5003000400400​​

What Is the Present Value (PV) of the Following Series $\begin{array}{lc}\text { Year } & \$ \\\hline 1 & 500 \\2 & 300 \\3 & 0 \\4 & 400 \\5 & 400\end{array}$